European Electricity Market

ACER Objectives

The Third Energy Package tasks ACER with monitoring the internal markets for electricity and gas. To this purpose, ACER prepares an annual market monitoring report in close cooperation with the European Commission, National Regulatory Authorities, and other relevant organisations. The legal basis for the Agency’s market monitoring duties is in Article 11 of Regulation (EC) No. 713/2009.
Moreover, the objective of ACER’s market monitoring activities is to explain how energy markets can perform more efficiently, thus making energy more affordable to the benefit of European energy consumers. For example, if barriers to market integration of the internal electricity and gas markets are removed, then the level of competition should improve. As a consequence, ACER market monitoring report aims to compare retail market competition in different markets across the EU, with a view to identifying instances of best practice which improve market performance.

The ACER’s report assesses the internal markets for energy and, in particular, focuses on retail prices (including compliance with consumer rights as mentioned in the Third Package), network access (including grid access for renewable energy sources), and on any barriers to the Internal Energy Market (IEM).​ The Market Monitoring report consists of 4 parts: electricity wholesale, Gas wholesale, electricity and gas retail and Customer Protection.

Energy Methodology

In 2011 a dedicated market monitoring team commenced the work on the first market monitoring report. Starting from the relevant legislation, they developed a methodology to assess retail markets, network access and wholesale market integration to detect market barriers. From this a set of indicators emerged for each of these three areas, which have been debated with national regulators, the European Commission and other relevant stakeholders.

The same methodology was applied for the second market monitoring report and the third market monitoring report covering respectively 2012 and 2013. The fourth market monitoring report (covering 2014) builds on the methodology of the third edition and extents the methodology in retail markets by applying the so-called ACER Retail Competition Index (ARCI).

The Market Monitoring team draws from public and non-public data sources to fill the selected indicators. For instance, the Agency sources data from national regulators and benefits from work executed by national regulators through CEER. As regards to public sources the Agency collects for example data from the ENTSO’s platforms and the Energy Markets Observation System (EMOS).  Read more: ACER  


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